Bhel assured of contracts in central utilities

Bhel has been assured part of contracts for supplying ‘supercritical’ generation plants, of capacities ranging from 660 to 800 mw, as opposed to 250-500 mw, to Central generation utilities like NTPC and Damodar Valley Corporation.

NTPC will now go for bulk order for the first lot of 10 such plants. According to the guidelines approved by Prime Minister Manmohan Singh, NTPC will first offer an international competitive bidding for the equipment, in which Bhel will also participate.

In case Bhel does not emerge as the winner, it will have to match the lowest price quoted by the winner for getting orders, the ratio of which has been defined as per the capacity of the plants.

The guidelines say NTPC will float bulk tenders for seven units of 660 mw each. The lowest bidder will get orders for four plants, while Bhel if it is not the winner will get orders for three plants at the winning price.

It also said NTPC will work on four units of 800 mw each at Dharipalli in Orissa and Damodar Valley Corporation on two plants of 800 mw at Kodarma in Jharkhand so that bids for them can be invited. Bhel has been assured two units if it is not the winner.

Bhel has also been asked to firm up its joint venture with the Tamil Nadu utility for two 800 mw plants in Udangudi and pursue its bids for two units of 800 mw for the Krishnapattanam ultra-mega power project in Andhra Pradesh. This is aimed at ramping up its capacity in the 800 mw range.

NTPC and Bhel have also been asked to finalise two turbine generators of 660 mw for the Barh project in Bihar.
All contracts will come with the rider that the supplier will have to set up manufacturing facilities in India. In cases where a manufacturer already has capacity here, it will have to ramp up in accordance with the work orders

source:
http://timesofindia.indiatimes.com/Business/India_Business/Bhel_assured_of_contracts_in_central_utilities/articleshow/3003141.cms